Do we need a joint home insurance policy?

GSDog

Hi all.

Me and my brother have recently inherited a property and we need to get buildings and contents insurance.
We have just taken out a joint mortgage on the property to renovate it.

Do we both need to be named on the insurance policy?
Does it need to be a joint policy if the mortgage is in both of our names?

The reason why I ask is because my brother is getting quotes of around £300 for both buildings and contents insurance when it's in his name, but when we add my name onto the policy it almost doubles or they even completely refuse to insure us. They say this is because I am a full time student and currently don't have a job.

Any help would be appreciated.

huckster

If the property is being renovated and is unoccupied, it will be considered a less attractive risk. Don't use online sites, as any cover you arrange this way is unlikely to be valid. You need to fully discuss the risk.

You would need to approach the Insurers of either of your main residences to see if they will quote for a new policy on this 2nd property. You should really have any Insurance placed in joint names, if you both have insurable interest. I am not sure why it is coming out more expensive to have both on the policy. It could be something to do with age of the youngest and the way Insurers have calculated the risk based on this. Most mortgage companies, just state that you should have adequate Insurance in place and not that it needs to be in joint names.

If you are struggling to get quotes based on the correct risk details, suggest that you see a decent local broker (not Swintons)

GSDog

huckster wrote: »

If the property is being renovated and is unoccupied, it will be considered a less attractive risk. Don't use online sites, as any cover you arrange this way is unlikely to be valid. You need to fully discuss the risk.

You would need to approach the Insurers of either of your main residences to see if they will quote for a new policy on this 2nd property. You should really have any Insurance placed in joint names, if you both have insurable interest. I am not sure why it is coming out more expensive to have both on the policy. It could be something to do with age of the youngest and the way Insurers have calculated the risk based on this. Most mortgage companies, just state that you should have adequate Insurance in place and not that it needs to be in joint names.

If you are struggling to get quotes based on the correct risk details, suggest that you see a decent local broker (not Swintons)

Thanks for the reply.

The property is currently unoccupied and it will be having internal work done to it over the next couple of months. However, we do both plan to move into the property as soon as the work is complete which shouldn't take any more than 3 months.

We did get a quote for buildings and contents with Santander, who is also our mortgage lender, but on the quote they only used my brothers name on the policy and not mine.
We're not quite sure why that is as the mortgage is in both of our names.
When we phoned them up tonight and got a quote with my name included in the policy it almost doubled. I believe that's because they couldn't quote us for their basic product with my name on the policy because of my age and occupation (full time student).
I'll try speaking to someone at my local branch and explaining my whole situation tomorrow. I need to get this insurance sorted as soon as possible because it's currently putting everything on hold.

Does the fact that the property will be unoccupied for the next 3 months make a difference to the cover/cost?

huckster

GSDog wrote: »

Does the fact that the property will be unoccupied for the next 3 months make a difference to the cover/cost?

Some Insurers may not accept the risk and those that do will impose conditions/exclusions. The conditions will relate to security (quality locks on doors and accessible windows), regular inspection and the exclusions will relate to water damage claims, theft. If you are moving in within 3 months and the work to the property does not include anything structural, then it should not be a problem. The student occupation may have flagged up additional costs. Insurers may have added a risk premium, to reflect student lifestyle and possibility of having regular lodgers. You would have to declare, if you were looking to have any people living there, apart from yourself and brother.

Santander Home Insurance is arranged by BISL (Budget Insurance), who have a bit of reputation for hassle. If you search the forums, you will not see too many kind words offered.

You really would be best to speak to a local broker (not Swintons) to sort out the cover. There is no requirement to use the provider connected to the mortgage.